France: Composite PMI reaches lowest level in eight months
October 23, 2014
The composite Markit Purchasing Managers’ Index (PMI) fell from a revised 48.4 in September (previously reported: 49.1) to 48.0 in October. The reading marked the lowest level in eight months. As a result, the composite PMI fell further below the 50-threshold that separates contraction from expansion in business conditions.
October’s result also marked the sixth consecutive month in which the index stayed in contractionary territory and reflected a deterioration in both the services and manufacturing sectors. According to Markit, “data signaled a deepening downturn in France’s private sector economy during October.” New businesses received by French firms fell for the second consecutive month and employment fell further in October, extending the deteriorating trend for one year. Markit concluded that, “[the] French economy remained stuck in reverse gear in October, as crumbling demand dragged activity lower.”
Author: Ricardo Aceves, Senior Economist